| | DECEMBER 20238Tata Power Renewable Energy Ltd (TPREL) has secured a 200 MW reliable and dispatchable renewable energy (FDRE) project from SJVN Ltd. This project guarantees continuous power supply and aids discoms in fulfilling renewable purchase obligation (RPO) and energy storage obligation (ESO), stated Tata Power in a regulatory filing. The company announced that its subsidiary, Tata Power Renewable Energy Limited (TPREL), has been granted a Letter of Award (LOA) to construct the 200 MW FDRE project in collaboration with SJVN Ltd (SJVN).However, the financial specifics of the order were not disclosed by the company. SJVN, a public sector undertaking (PSU), is engaged in hydroelectric and renewable power generation and transmission. It holds the designation of Renewable Energy Implementing Agency (REIA) by the Ministry of New & Renewable Energy (MNRE), aiming to accomplish the nation's target of achieving 500 GW by 2030. Notably, this marks TPREL's first success in securing an FDRE power tender. Additionally, the tender includes a greenshoe option, allowing for potential extra capacity beyond the initial 200 MW.This project incorporates a hybrid mix of solar, wind, and battery storage capacities. The anticipated timeframe for project commissioning is within 24 months from the execution date of the power purchase agreement (PPA). The project was secured through a competitive bidding process, followed by a reverse e-auction. Once operational, the installation is expected to offset 9 lakh metric tonnes of CO2 emissions annually. With this recent achievement, TPREL's total renewable capacity now stands at 8,314 MW. This includes 4,100 MW across projects in various development stages and an operational capacity of 4,214 MW, comprising 3,200 MW in solar projects and 1,014 MW in wind projects. TATA POWER RENEWABLE ENERGY SECURES 200 MW FDRE PROJECTULTRATECH'S ACQUISITION OF KESORAM'S CEMENT DIVISIONIN FOCUSIN FOCUSUltraTech, a part of the Aditya Birla Group, is set to acquire Kesoram Industries' cement business in an all-stock deal valued at approximately Rs 7,600 crore, inclusive of debt. This acquisition will grant UltraTech control over two integrated cement plants in Karnataka and Telangana, boasting a combined production capacity of 10.75 million tonnes per annum (MTPA). According to UltraTech's statement, this move will allow the company to expand its presence in the rapidly growing western and southern markets of India, which are currently highly competitive and fragmented. Additionally, it presents an opportunity for UltraTech to penetrate the southern markets, specifically Telangana, where it presently lacks any cement manufacturing capabilities.UltraTech, the nation's largest cement manufacturer, will issue one share of its own for every 52 shares of Kesoram Industries, as per a regulatory disclosure. This issuance will result in the creation of approximately 5.97 million new UltraTech equity shares allotted to Kesoram's shareholders. The exchange will lead to a 2.2% dilution of UltraTech's equity capital, valued at around Rs 5,400 crore. Alongside this, UltraTech will undertake the outstanding debt of Kesoram's cement arm, elevating the deal's enterprise value to approximately Rs 7,600 crore. Analysts from Centrum Broking estimate the swap ratio to be equivalent to Rs 173 per share for Kesoram, valuing the deal at $83 per metric tonne. This ratio marks a premium of 24% over Kesoram's closing share price of Rs 139.11."The valuation seems equitable for both entities, enhancing the efficiency and profitability of Kesoram's assets while granting UltraTech immediate access to operational assets,", remarked Mangesh Bhadang, Senior Vice President at Centrum Broking. Bansi S Mehta Valuers and PwC Business Consulting Services conducted valuations determining the swap ratio. The transaction, slated to conclude within the next 9-12 months, hinges upon regulatory clearances. Both companies, in their stock exchange filings, have affirmed that the transaction is executed on a fair basis. Furthermore, it was noted: "Several entities affiliated with the promoters of UltraTech are part of the promoter group of Kesoram Industries Ltd". Manjushree Khaitan, Chairperson of Kesoram Industries, is the paternal aunt of Kumar Mangalam Birla, Chairman of the Aditya Birla Group.
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